- Dan Morehead considers Bitcoin could reach $42,000 before the end of the year
- The digital currency has been growing throughout this year
Dan Morehead, the CEO of Pantera Capital, considers that Bitcoin (BTC) could reach $42,000 by the end of the current year. He said that during a conversation with Laura Shin in an episode of her Unchained Podcast. In this interview was also present Joey Krug, also part of Pantera Capital.
Could Bitcoin Surge And Reach $42,000?
Mr. Morehead talked about Bitcoin and the whole crypto and blockchain industry during the podcast. He said that the digital currency has the potential to reach $356,000 in the next three years if we take into account past trends on a logarithmic scale.
In addition to it, he explained that the most popular crypto could eventually surge and hit $42,000 by the end of the current year. That means that the digital currency would have to grow more than 332% in order to reach such a price.
Morehead has also talked about the Gartner Hype Cycle through which it is possible to understand the levels of hype of new technologies.
About it, he commented:
“A small kernel of something very important gets people to be crazed about [Bitcoin] and then the trough of disillusionment [occurs]. And we’ve already gone through two of those cycles in the six years that we’ve been investing in it.”
The CEO of Pantera Capital explained that the price of Bitcoin is not a good proxy to understand the development of blockchain technology and the crypto space as a whole. He mentioned that if people zoom out it is possible to see that the price of Bitcoin continues growing.
Pantera considers that $42,000 would be the price that Bitcoin would have if it grew since January until December following the previous trend line with a yearly growth of around 235%. Following this trend Bitcoin would be traded around $122,000 by the end of 2020 and $365,000 by the end of 2021.
Although he said that this sounds crazy, Morehead mentioned that we are half away from arriving there. Currently, Bitcoin is being traded around $9,730 and it has a market capitalization of $173 billion, according to CoinMarketCap.